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Guide to mutual agreement procedures

c.8 DETAILS REGARDING THE RELATIONSHIPS, SITUATIONS OR STRUCTURE OF THE TRANSACTIONS BETWEEN THE PERSONS CONCERNED

The more clearly the transactions concerned are described, the less likely the competent authority will have to request additional information.

So, in the interests of the speed of the procedure, the taxpayer would be well advised to provide a precise description of each of the transactions to which the procedure relates, describing the role of the parties involved, as well as the relationship between those parties.

The description should also cover the circumstances giving rise to the transactions, accompanied by evidence of those circumstances, where possible.

Example: Example: A Spanish company has been tax audited resulting in tax adjustments in its corporation tax because the value of the marketing support services provided by associated entities in France, Italy, Portugal and Argentina was deemed not to be in accordance with the arm's length principle.

The request must explain the global structure of the group, indicating where the parent company is located and what distribution functions each of the subsidiaries carries out, backed up with the relevant distribution contracts, where possible.